Land and Houses aims for the real estate market to recover After the domestic economy improved, revealing the annual plan2017 launched 17 new projects worth 34,960 million baht, an increase of 8%, with a sales target of 35,000 million baht and a target to recognize revenue from ownership transfers of 33,000 million baht.
Mr. Naporn Soonthornchitcharoen Chairman of the Executive Committee of Land and Houses Public Company Limited (LH) reveals the overview of the real estate market in 2023, which the company expects to have a continuous recovery rate. The condominium market will continue to recover from 2022, with gradually recovery. Which has supporting factors from both the domestic economy improving This will help strengthen domestic demand for strong growth. Including demand from foreign customers that should gradually return following the opening of the country. and the journey started to return to normal
“Trends in the real estate sector this year It is expected that entrepreneurs will begin to develop more horizontal projects. While returning to the development of condo projects in the city will decrease. but will develop more projects in suburban areas As for the market supply, it will gradually be released. Overall, it depends on the confidence of consumers and entrepreneurs about the overall economy that will expand to what extent. However, I believe that real estate will recover better than last year, ”said Naporn.
and according to the Real Estate Information Center Government Housing Bank stated that the number of residential units registered in Bangkok and its vicinity during the last 10 months of 2022 has a total of 53,785 units, an increase of 5.6% compared to the previous year. with a total of 50,956 residential units, divided into low-rise projects with 20,876 units, a decrease of 7.8%, divided into single-family houses and twin houses of 11,973 units, an increase of 9.6%, townhouses and commercial buildings of 8,903 units, a decrease of 24.1% and condominiums of 32,909 units, an increase of 16.3% compared to the previous year with 28,302 residential units.
As for the overview of the condominium market during the year2019-2021 continued to shrink in terms of the number of units sold and the number of new units launched for sale As a result of the LTV measures that were enforced during April 2019, while the situation of the spread of the COVID-19 virus Has affected the economic conditions both domestically and internationally. However, the slowdown in the launch of condominium projects by developers during this period is a positive effect on the overall market. Because it helps to drain the remaining inventories in the market.
While the overview of the real estate market for rent in the past year It was a year where the situation of the epidemic of COVID-19 virus improved especially in the second half of the year together with the return of tourists from abroad These factors directly benefit the Company’s real estate for rent business. Both in terms of hotels, apartments and department stores both in Thailand and the United States. In 2022, the company invested in real estate for rent through LHMH and LH USA in the amount of 3,700 million baht, consisting of the development of Terminal 21 Rama 3 shopping center worth 350 million baht. baht and hotel and apartment business development amounting to 3,350 million baht.
Regarding the company’s operational plan for the year this year, the company plans to launch 17 new projects worth more than 34,960 million baht, an increase of 8%, divided into 16 low-rise projects worth 28,460 million baht and 1 condominium project worth 6,500 million baht, which are projects developed in prime locations. 13 projects in Bangkok and its vicinity and 4 projects in the provinces. As of the beginning of 2023, the company has a total of 70 projects for sale, divided into 62 low-rise projects worth 47,983 million baht and 8 condominium projects worth 8,375 million baht.
However, if separated by product types to be developed in the year.This year 2023 consists of 15 detached house projects, 1 twin house project, 1 townhouse project, 1 condominium project. Therefore, the number of projects to be implemented will have a total of approximately 87 projects with a total project value of over 91,320 million baht, of which 78 are low-rise products. projects worth 76,450 million baht and 9 condominium projects worth 14,870 million baht.
The condominium projects have returned to develop new projects in the year.2023, which the company plans to launch a new condominium project worth 6,500 million baht, namely The Key Srinakarin project, which will be launched in the third quarter. Housing 6,000 million baht, investment budget for real estate for rent 3,000 million baht. For the year 2023, the company sets a sales target of 35,000 million baht and the goal is to recognize revenue from ownership transfers of 33,000 million baht. at 7,150 million baht
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